Under a cost-leadership strategy, it is especially important that a brand's image be carefully nurtured and protected, so that brand loyalty and customers' willingness to pay a premium price does not erode.

Cost-Leadership Strategy

A business strategy aiming to become the lowest-cost producer in the industry to gain a competitive advantage.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones due to satisfaction, trust, and a positive experience with the brand.

Premium Price

Charging a higher price for goods or services, typically justified by the perceived higher quality or uniqueness.